In a notable exchange on social media, German automotive manufacturer BMW expressed admiration for Tesla’s advanced full self-driving (FSD) technology. On Tuesday, BMW referred to a video showcasing a Tesla vehicle navigating urban streets autonomously without human intervention using the latest iteration of its FSD software, version 13. The company shared its reaction on the platform X, stating, "Very impressive."
Tesla's response to BMW was lighthearted, involving a simple, cheerful acknowledgment with the message, “Hi BMW” accompanied by a grinning emoji. This interaction has stirred discussions among industry analysts and enthusiasts, with many speculating that Tesla may soon enter into licensing agreements with other vehicle manufacturers eager to adopt its self-driving technology.
Gary Black, the Managing Partner at The Future Fund, commented on the potential for Tesla to secure such partnerships, noting, "At some point, $TSLA will sign an FSD licensing deal with another auto manufacturer who hasn't developed an autonomous driving package to their liking. One deal will cause others to follow..." Black elaborated that while he anticipates this could enhance Tesla's future revenue models, he remains cautious, stating, "There has to be real meat behind it or we don't count it." At present, he maintains a price target of $380 for Tesla shares over the next 6 to 12 months, not factoring in any potential licensing deals.
Looking ahead, Tesla’s CEO, Elon Musk, indicated earlier this year that the company would be amenable to licensing its FSD technology. However, he clarified in January that no agreements had yet been reached. Musk noted, "I think they (rival automakers) don’t believe it’s real quite yet,” further emphasising that other manufacturers should reach out to Tesla regarding licensing.
The developments highlight the growing significance of autonomous driving technology in the automotive sector and the implications it could hold for business practices moving forward, as traditional automakers evaluate the integration of such systems into their offerings.
Source: Noah Wire Services